LAHORE: The Federal Tax Ombudsman (FTO) has remanded back an appeal to solve the issue of the petitioner. The same appeal was filed by proprietor of M/s Bhatti Rice Mills against the Regional Tax Office (RTO-II) Lahore which was adjourned until the next date of hearing.
FTO Advisor Mian Munawar Ghafoor heard the case. The counsel for the appellant argued that the RTO failed to release the sales tax refund to the appellant after passage of two years.
He said that the RTO-II had collected excessive taxes from the company for two years. The petitioner approached the officials concerned several times for release of refunds, but the RTO officials failed to clear refunds after the lapse of a reasonable time.
Finally, the appellant decided to approach the FTO, seeking his intervention in the case. The counsel appealed to the FTO Advisor to direct the RTO-II to clear the refund claims.
The counsel further said that delay in release of refunds puts burden on the taxpayer, so the RTO-II should make audit of the case and release the extra amount collected from the taxpayer.
On the other hand, counsel for RTO-II argued that the appellant has not submitted all the record in the office for claiming refunds. If he provides accurate record, the RTO-II will release refunds after a proper assessment, he maintained.
After hearing the arguments from both sides, FTO Advisor ordered the Regional Tax Office to resolve the issue of petitioner regarding the tax refund.